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America’s Roundup: Dollar hovers close to one-week high, Wall Street closes higher, Gold edges higher, Oil rises 3%, extending rally as Omicron fears retreat-December 8th,2021

Market Roundup

• Canada Oct Trade Balance 2.09B, 2.00B forecast, 1.86B previous

• US Unit Labor Costs (QoQ) (Q3)  9.6%,8.3% forecast, 1.1% previous

• US Nonfarm Productivity (QoQ) (Q3) -5.2%,-4.9% forecast, -5.0% previous        

• US Oct Trade Balance -67.10B,  -66.80B forecast, -80.90B previous

• Canada Oct Exports  56.18B, 53.00B previous

• US Exports 223.60B ,207.60B previous

• US Imports 290.70B,288.50B previous

• GlobalDairyTrade Price Index 1.4%, 1.9% previous

• Canada Nov Ivey PMI  61.2,59.3 previous

• Canada Nov Ivey PMI n.s.a 61.2, 61.2 previous

Looking Ahead - Economic Data (GMT)

• 23:40 Japan GDP (QoQ) (Q3)        -0.8%forecast ,0.5% previous

• 23:40 Japan GDP (YoY) (Q3)       -3.1% forecast, 1.9% previous

• 23:40 Japan Oct Current Account n.s.a 1.309T     forecast, 1.034T previous

• 23:40 Japan Adjusted Current Account 0.76T previous

•03:15 New Zealand Manufacturing Sales Volume (QoQ) (Q3) -0.1% previous

•05:20 Japan  BSI Large Manufacturing Conditions (Q4) 7.0 previous

•07:00 China Nov  CPI (YoY)  2.5%                forecast, 1.5% previous

•07:00 China Nov  PPI (YoY)  12.4% forecast, 13.5% previous

•07:00 China Nov  CPI (MoM)  0.3% forecast, 0.7% previous

Looking Ahead - Events, Other Releases (GMT)

• 03:30 Australia RBA Governor Lowe Speaks

EUR/USD: The euro dipped against dollar on Tuesday as s a firmer dollar and U.S. Treasury yields weighed on euro. The dollar index steadied, hanging on to an overnight jump made with U.S. yields as investors hoped early signs the Omicron variant may be mild will be proved correct.On the data front,German industrial output rose more than expected in October in a rare sign of strength in manufacturing, but analysts warned that supply bottlenecks for raw materials and intermediate goods would continue to hamper production in Europe's biggest economy. The euro was down 0.07 percent at $1.1277. Immediate resistance can be seen at 1.1362 (50% fib), an upside break can trigger rise towards 1.1420 (30 DMA).On the downside, immediate support is seen at 1.1274(38.2%fib), a break below could take the pair towards 1.1179 (23.6% fib).

GBP/USD: Sterling was pinned near 2021 lows against the U.S. dollar on Tuesday thanks to a broadly sturdy greenback and growing expectations that the Bank of England will keep interest rates unchanged next week. The dollar index was steady and riskier currencies picked up as traders bet that the Omicron variant would not be as severe as previously expected.Sterling was down 0.1% against the dollar after hitting a session’s low at $1.3207, not far from last week’s 2021 low below $1.32. Immediate resistance can be seen at 1.3265(50%fib), an upside break can trigger rise towards 1.3328(61.8%fib).On the downside, immediate support is seen at 1.3194  (38.2%fib), a break below could take the pair towards 1.3126  (23.6%fib).

USD/CAD: The Canadian dollar strengthened to a two-week high against its U.S. counterpart on Tuesday as concern about the economic threat of the Omicron coronavirus variant receded and data showed Canada posting its biggest trade surplus in nearly a decade. Canada posted a trade surplus of C$2.1 billion in October, with imports and exports both hitting record levels on higher trade in motor vehicles.The loonie was trading 0.8% higher at 1.2647 to the greenback , its biggest gain since Sept. 23. The currency touched its strongest intraday level since Nov. 22 at 1.2633. Immediate resistance can be seen at 1.2682 (38.2%fib), an upside break can trigger rise towards 1.2746  (23.6%fib).On the downside, immediate support is seen at 1.2636(50%fib), a break below could take the pair towards 1.2567(61.8%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as traders bet that the Omicron variant of COVID-19 would not be as severe as previously expected. On Sunday, the top U.S. infectious disease official, Anthony Fauci said Omicron variant does not look like there's a great degree of severity  so far. Besides Omicron, central banks are in focus. The Bank of Canada meets on Wednesday, with markets expecting it to set course for rate hikes next year. The Fed, Bank of England, European Central Bank and Bank of Japan all meet next week. Dollar was 0.16% higher against the yen at 113.65 yen. Strong resistance can be seen at 113.77(23.6%fib), an upside break can trigger rise towards 113.91 (30DMA).On the downside, immediate support is seen at 113.17 (38.2%fib), a break below could take the pair towards 112.68 (50%fib).

Equities Recap

European stocks jumped 2.5% on Tuesday, boosted by a strong rebound in technology shares as worries somewhat eased over the Omicron coronavirus variant, while German shares surged close to 3% led by automakers.

UK's benchmark FTSE 100 closed down by  1.49percent, Germany's Dax ended up by 2.82 percent, France’s CAC finished the day up by 2.91percent.                         

Wall Street's main indexes finished Tuesday's session with strong gains as investors shook off some anxiety about the latest coronavirus variant and investors boosted Nasdaq by piling into technology stocks.

Dow Jones closed up  by  1.40% percent, S&P 500 closed up by 2.07% percent, Nasdaq settled down  by 3.03%  percent.

Commodities Recap

Gold prices inched higher on Tuesday as investors’ attention turned to U.S. inflation data due this week, which could influence the pace at which the Federal Reserve hikes interest rates.

Spot gold was up 0.2% to $1,782.39 per ounce by 01:40 p.m. ET (1840 GMT). U.S. gold futures settled up 0.3% at 1,784.70.

Oil prices climbed by more than 3% on Tuesday, extending the previous day's rebound of almost 5% as concerns eased further about the impact on global fuel demand of the Omicron coronavirus variant.

Brent crude futures settled up US$2.36, or 3.2%, at $75.44 a barrel, after Monday's rise of 4.6%. U.S. West Texas Intermediate crude rose $2.56, or 3.7%, to $72.05, building on a 4.9% gain the previous session.

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